Here is what will happen on Friday if Britain votes to remain in the EU

Prime
Minister David Cameron delivering a speech on immigration at the
Home Office in 2015 in London.Matt
Dunham - WPA Pool/Getty Images

The pound could jump by as much as 6% against the dollar and UK
Independence Party leader Nigel Farage could resign Friday if
Britain votes to remain in the European Union in Thursday's
referendum and avoid a so-called Brexit.

Leading up to the vote, more attention has been given to
apocalyptic market scenarios in the event of a Brexit than to
what would happen if the UK votes to stay in the EU.

Some of the forecasts have been grim. HSBC estimated this week
that if Britain votes to leave the EU, the pound could fall by
15% against the dollar and gross-domestic-product growth could be
1 to 1.5 percentage points lower in 2017 than it would have been
otherwise.

With the result on a knife edge, however, there is a good
chance it won't turn out that way. Here are some of the
predictions of how Friday could unfold if the UK votes to
stay:

Currency:

The pound will most likely get a bump against the dollar, as
future uncertainty clears. "Should a remain outcome be confirmed,
the market will immediately begin to focus on underlying
indicators and in this scenario we can envisage sterling reaching
$1.56 within a year," Bill O'Neill at UBS Wealth Management
said.

Stock
Markets:

Stocks are set to rise rapidly on a Remain vote, with
Barclays and Ryanair the big winners in the UK, according to
research by Macquarie, while Morgan Stanley has said EU indexes
would rally even harder.

The goodwill might flow across the Atlantic too, as risky
assets become more attractive. Analysts from Morgan Stanley said
in a note that "this episode could go the way of Y2K, and by July
4th we in the US may be celebrating our independence from Britain
while we are also celebrating Britain's lack of independence from
Europe, with materially higher markets."

Interest
Rates:

Yields on bonds will rise sharply as investors dump safe
government debt assets for riskier shares, according to a note
from Deutsche Bank published Tuesday.

Further down the line, that could translate to higher
central-bank rates. With no EU referendum to worry about roiling
financial markets, central bankers can focus more fully on
stopping inflation. The Bank of England's inflation report on
August will be an important moment, according to O'Neill at UBS:
"It will be a pivotal point in the direction of policy for the
last months of the year," he said.

Politics:

Leadership challenges from the right wing would come to a
head. Bookies at Ladbrokes have now chalked up Nigel Farage
at 8/11 to have left his position with the Eurosceptic party
within a few days of the EU referendum outcome.

A victory for Remain wouldn't necessarily halt the momentum
of nationalist parties across Europe. According
toCLSA's "Greed and Fear" research note, a
narrow victory could still empower right-wing movements on
the continent and "it would take a 10-point-plus
majority for the 'ins' for the referendum to become neutral
for Eurozone separatists," according to CLSA's Greed and Fear
research note.